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CA CPI [m/m]

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Canada
CA Consumer Price Index

The Canada inflation indicator, which means close attention from the Bank of Canada as to an indicator that influences the level of the bank's interest rate. It may work in different ways at different times.

Features of the publication

Watch the movement before the release
It can be perceived in different ways
Monitor neighboring publications

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The next signal

13:30 Wednesday (19/12/2018)
Recommended trading pair
USDCAD

How to trade CA CPI [m/m]

Once the data approach the target level of the Bank of Canada, the market responds better to the publication of this report, because overcoming the established threshold raises additional concerns about the likely change in the monetary policy of the regulator. The further we are from the target inflation level, the higher the chance that the Bank of Canada will intervene and adapt its policy either by boosting the reflation or by lowering it. As a rule, the target inflation level is set at 2% and can vary depending on the objectives of the central bank.

Please note that after the Statistical Office of Canada had changed the estimation methods for the indicator, we switched our trading attention from the Core CPI to a regular CPI, because three other CPIs replaced the Core indicator: Trimmed CPI, Median CPI and Common CPI.

The market was a bit confused due to this and shifted its attention to the general consumer price index.

Monitor the pair movement before the moment of publication: if you haven’t received the data at the time of release but can see how the trading pair is already reacting, then abandon trading.

 

Monitor if there are any neighboring releases at the same time, since the consumer price index, for example, may (sometimes) be released simultaneously with Canada's retail sales data. This simultaneous publication should cause you extra caution.

History of publications

Date:
23/11/2018
Signal:
Sell 2
Cons:
0.10
Fact:
0.30
Dev:
0.20
React:
25
Direct:
Saw
Pair:
USDCAD
Others
Date:
19/10/2018
Signal:
Buy 2
Cons:
0.10
Fact:
-0.40
Dev:
-0.50
React:
80
Direct:
Up
Pair:
USDCAD
Best entry
Date:
17/08/2018
Signal:
Sell 2
Cons:
0.10
Fact:
0.50
Dev:
0.40
React:
70
Direct:
Down
Pair:
USDCAD
Best entry
Worst entry
Others

Comments

Comments (3)

  • Mark Arnaus's picture
    Mark Arnaus

    [20/12/2017] The calendar of the events was changed, now we have too many events released at the same time in Thursday: CA CPI + CA Retail Sales – Core + US GDP Annualized. All these events will come with a time-lag.
    According to this and according to pre-Christmas low liquidity market – we will pass this trading.
    We do not recommend you to take a part here.

    Dec 20, 2017
  • Mark Arnaus's picture
    Mark Arnaus

    23/03: Necessarily READ THE NEXT SIGNAL comment!

    Mar 23, 2018
  • anon
    Антон (not verified)

    Спасибо за хороший сигнал

    Apr 20, 2018

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